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Allied Minds' HawkEye 360 portfolio company raises US$9.6mln in early-stage round of funding

Allied Minds was among those taking part in the funding, investing US$2.94mln into HawkEye 360, which uses satellite technology to track and map various activities on earth
dollar bills
The funding valued HawkEye at US$75mln

Allied Minds PLC's (LON:ALM) portfolio company, HawkEye 360, has raised just shy of US$10mln in the first closing of a Series A-3 financing round.

Of the US$9.6mln raised, Allied Minds invested US$2.94mln, meaning its stake in the mapping and analytics group now stands at 50.8%.

Other investors in this early-stage round of funding included Razor’s Edge Ventures, Shield Capital and an unnamed US aerospace and defence company.

HawkEye plans to use the cash injection to fund the development, build and launch costs of the company's first commercial satellite cluster and for general commercial purposes.

“We are pleased that HawkEye 360 has attracted additional capital from high grade strategic investors,” said Allied Minds chief executive Jill Smith.

“We look forward to the PathFinder Cluster launch and to HawkEye 360 delivering on its considerable commercial potential.”

John Serafini, CEO of HawkEye, added: “The successful fundraise attests to the substantial development and operational progress made at HawkEye 360 towards our goal to become the global leader in space-based, precision RF signals detection, geolocation and analytics services.”

‘Strong buying opportunity’

“H1 results are now expected on 28th September, which will allow the reflection of this transaction and other previously disclosed financing and commercial development initiatives currently live,” read a note to clients.

“Clearly, we are still awaiting news on the financing round of Spin Transfer Technologies (which accounts for c.28% of NAV), however we would interpret the lack of news as meaning that discussions continue to progress positively (as otherwise an announcement to the contrary would be required).”

The analysts added: “The stock now trades at 0.55x FY18 NAV, which feels like a strong buying opportunity for exposure to a focused portfolio of high IP businesses with venture style risk/reward profiles.”

Shares were broadly flat at 84.7p on Monday morning.

-- Updates for share price and broker comment --

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Allied Minds Timeline

September 29 2016

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